The Government has announced a hike in dearness allowance or DA and dearness relief coming in the next few days. As per the reports, the Centre is expected to raise the DA from the current ratio of 32% to 42% for the millions of employees as a Holi gift.
Centre to Hike DA in Next Few Days
“The Centre is planning to revise the DA and fitment factor after March 8. Currently, the common fitment factor is at 2.57%, which means an employee who receives Rs 15,500 in 4200 Grade Pay, would get a total pay of Rs 39, 835, by multiplying (Rs 15,500 x 2.57) as per 6th Central Pay Commission,” says an Economic Times report.
Previously, the 6th pay commission fixed that fitment ratio at 1.86% and the 7th CPC at 2.57%, “at which the Central government employees are being paid at present. The central government employees, however, now demand that the fitment factor should be hiked to 3.68. If their demand is accepted, then this would lead to a minimum wage of Rs 18,000 being increased to Rs 26,000.”
“The CPI-IW for December 2022 was released on January 31, 2023. The dearness allowance hike works out to be 4.23 per cent. But the government does not factor in hiking DA beyond the decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent,” said
“The expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval,” he further said.
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Calculating DA
As for the Central Government employees- “The DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100.”
Whereas for the central public sector employees- “{(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100.”
